Reliance Power Settles Corporate Guarantee Obligation Of Vidarbha Industries Power

Reliance Power Ltd. said it settled its obligation related to the corporate guarantee of its subsidiary Vidarbha Industries Power Ltd.

The company settled its entire obligations as a guarantor on behalf of Vidarbha Industries Power, Reliance Power said in a stock exchange announcement.

This resulted in release and discharge of corporate guarantee, undertakings and all obligations and claims related to Vidarbha Industries Power’s outstanding debt of 3,872.04 crore rupees ($462 million), it added.

The Indian power producer said it has settled all disputes with CFM Asset Reconstruction Private Ltd. and 100% shares of Vidarbha Industries Power have been pledged in favor of CFM against the release and discharge of corporate guarantee given by Reliance Power.

Reliance Power, the listed entity, has zero debt from banks and financial institutions, it noted.

The company -- a part of the Reliance Group -- has one of the largest portfolios of power projects in the private sector, based on coal, gas, hydro and renewable energy, with commissioned portfolio of 5,300 megawatts, according to the statement.

Note: $1 = 83.8061 Indian rupees

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